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    Statistics
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    Practical Econometrics
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    Exam 11: Auto-Correlation
  5. Question
    What Is the Potential Shortcoming of the Cochrane-Orcutt Method for AR(1)processes
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What Is the Potential Shortcoming of the Cochrane-Orcutt Method for AR(1)processes

Question 8

Question 8

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What is the potential shortcoming of the Cochrane-Orcutt method for AR(1)processes? Why is it a concern? How do you correct for it? Explain.

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